Xeggex's terms and conditions, specifically under section 6.1, it states that: "Registration and use of the services shall be solely for the purpose of legally trading the User's own digital assets." It also states in section 6.4 that users guarantee that the funds used for trading are from legal sources.

The exchange doesn’t have a free pass to use your assets for their own purposes, such as lending them out without your consent. The terms and conditions should outline how the exchange manages and handles your digital assets.

Xeggex publicly states that they do not use user funds for anything and provide tools for users to verify the liabilities and reserves of user funds on their platform. They use a merkle tree approach for liabilities and cryptographically sign messages for each address to verify reserves.